Trans Union Credit scoring

[General.Massacre]

Hi all.

have an interest topic, maybe im just being stupid.
in March, i checked my Credit Rating with Trans Union, and was pleased with a score of 940 of the 999 allocated.

4 months later, im now on a score of 731.
ive not defaulted on any payments, nor any late payments made.
i did read however that Credit Enquiries can play a part in the rating dropping, im currently looking for a car now as a lot of people are aware,
and ive applied for a total of 4 cars, but i realised that the dealers pump out applications to EVERY possible bank and lending house they can to try get the sale, so my Enquiries count went from 7, to 24 in a short space of time.

my question, is surely that with being requested to do applications before hand (as some vehicles ive applied for have been as far as Cape Town, so one cant just go see the car before applying), and then also, cars that have been approved, have been sold to another buyer out from under my initial application, so these would then be out of my control?

I mean, surely me having an interest in a vehicle, shouldn't defer me. and a credit rating should only change on a Declined application???

does anyone know how to avoid this, apart from Pre-approvals, as i can be pre-approved for an amount, but then want to possibly add a deposit/Trade in, and then the dealer puts their fees, which we are very rarely privy to, until its time to sign.

I just dont want this decrease in credit score affecting my future application for when a car actually is the one i want, then it gets declined because my rating is too low, yet my finances havent changed and i can afford the vehicle easily, or worse, i get an exorbitant Interest Rate.

Any advise from people in the know?

 

[CliftonH]

Hi, Enquiries on your rating does affect your score, when the dealership puts through an application all the bank s will inquire,

my advise would be to search within the price of the vehicle that you was approved the first time and do not put through any future applications until you are 100% sure that that's the car you want,

a car can be bought and delivered within 3 days so don't stress about other people buying it etc,

remember the more inquiries done the more your credit rating is affected the more your interest rate will be and the higher the risk that when you do find the car you want, the finance might be declined,

I learnt this as well from a dealership who was kind enough to tell me to not let dealerships put applications until you are 100% sure you want the car, you can discuss the cost and everything with them and calculate a rough re-payment without actually putting through an application,

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Oh and just BTW, if you see an inquiry done where you never gave permission you can take it up and sue that company,

 

[///Avi]

Hi, Enquiries on your rating does affect your score, when the dealership puts through an application all the bank s will inquire,

my advise would be to search within the price of the vehicle that you was approved the first time and do not put through any future applications until you are 100% sure that that's the car you want,

a car can be bought and delivered within 3 days so don't stress about other people buying it etc,

remember the more inquiries done the more your credit rating is affected the more your interest rate will be and the higher the risk that when you do find the car you want, the finance might be declined,

I learnt this as well from a dealership who was kind enough to tell me to not let dealerships put applications until you are 100% sure you want the car, you can discuss the cost and everything with them and calculate a rough re-payment without actually putting through an application,

---

Oh and just BTW, if you see an inquiry done where you never gave permission you can take it up and sue that company,

---

I agree with this.

@General.Massacre

Not only will more enquiries afffect your score, many enquiries in a short space of time will affect your score badly.

Dealerships also like to do the application for you so they can tie you to the car via their finance people and their interest rate. The only way you negotiate rates are via them. You can't go to your bank afterward and negotiate a better interest rate because the application has been done (I think there is a month or cooldown before you can do that).

 

[General.Massacre]

Thanks for the feedback guys.

yes ive done all 4 applications in the last 2 months, so multiply that by an average of 3 banks per application, its alot of applications, so think i need to cool it a bit then.

And as said by Avi, all the applications done, ive sent the application that i filled in to the dealership, and they handled it from there, i assume this is the incorrect way of handling it?

 

[NtandoN]

Rather than the dealership doing your finance application, why don't you do it yourself? Approach the banks with the highest purchase price from your choice of vehicles. You then have 4-5 inquiries for credit rather than 20 odd. Also you can normally negotiate a better rate than going through dealership finance.

Many credit inquiries will affect your score but a drop from 940 to 731 is quite steep IMHO :skit:

 

[MikeR]

:YesNo: I find it rediculas that a score should be effected by inquiries. Your score should be based on your credit history and financial security thats all.

 

[General.Massacre]

Rather than the dealership doing your finance application, why don't you do it yourself? Approach the banks with the highest purchase price from your choice of vehicles. You then have 4-5 inquiries for credit rather than 20 odd. Also you can normally negotiate a better rate than going through dealership finance.

Many credit inquiries will affect your score but a drop from 940 to 731 is quite steep IMHO :skit:

Thanks, i have a application approved on a white DCT 335i E92, however, they had to service it, as the Tappet Cover was leaking, and the drivers fender needs replacing and respray for a very bad scratch, so that application is pending with the bank for me to sign.

the car i want needs an application still but i need my car sold first, which will be the deposit, then i will submit that application personally.

YesNo I find it rediculas that a score should be effected by inquiries. Your score should be based on your credit history and financial security thats all.

I agree with this fully. its crazy

 

[///Avi]

Thanks for the feedback guys.

yes ive done all 4 applications in the last 2 months, so multiply that by an average of 3 banks per application, its alot of applications, so think i need to cool it a bit then.

And as said by Avi, all the applications done, ive sent the application that i filled in to the dealership, and they handled it from there, i assume this is the incorrect way of handling it?

No it isn't incorrect. But the dealership doesn't have your best interest at heart. Your private banker for example wouldn't either, but at least they have a personal relationship with you and you can negotiate a better interest rate via them. I like having the choice in my hands. Irritates me when a dealer tells me that finance is approved and they don't even tell you at what interest rate, until you ask for the rate.

But only do your next application when you are sure of what you want:coolShake:

 

[RAArmstrong]

Interesting. Learnt something new today...

 

[General.Massacre]

Thanks for the feedback guys.

yes ive done all 4 applications in the last 2 months, so multiply that by an average of 3 banks per application, its alot of applications, so think i need to cool it a bit then.

And as said by Avi, all the applications done, ive sent the application that i filled in to the dealership, and they handled it from there, i assume this is the incorrect way of handling it?

No it isn't incorrect. But the dealership doesn't have your best interest at heart. Your private banker for example wouldn't either, but at least they have a personal relationship with you and you can negotiate a better interest rate via them. I like having the choice in my hands. Irritates me when a dealer tells me that finance is approved and they don't even tell you at what interest rate, until you ask for the rate.

But only do your next application when you are sure of what you want:coolShake:

Agreed, the age old saying, if you want it done right, do it yourself
But the next application will be on the one i want, just need to get my Astra sold, then i can go ahead.

Interesting. Learnt something new today...

So have I

 

[hereticangel]

Just remember some insurance quotes also checks your credit record so might go down even more when shopping for insurance.

Few years back I got approved for car, but decided not to buy it. They applied to all the banks.

Found another car 2 weeks after, they did the same thing, through now I needed a big deposit, because of my credit record going down.

 

[WIDEOPN-X5]

Okay so what is the reason that a credit enquiry and approval reduces your credit score though?? Makes no sense to me??:skit:

 

[flintstone]

Okay so what is the reason that a credit enquiry and approval reduces your credit score though?? Makes no sense to me??:skit:

Apparently it is seen by prospective lenders that you looking for loans all over the place. Which potentially makes you a higher risk.

 

[Shahaad]

Okay so what is the reason that a credit enquiry and approval reduces your credit score though?? Makes no sense to me??:skit:

Apparently it is seen by prospective lenders that you looking for loans all over the place. Which potentially makes you a higher risk.

Yes, but surely they know that the only way someone finds out what interest they qualify for is by applying for the loan.

Until then you have no idea if it will be worth your while financing the deal.

This IMO should not have an impact on your score, yes if you have the loans and have been proven to be high risk then by all means your rating should be low.

Just because I apply for finance (forced to) to find out what my qualifying rate will be should not impact score until I actually sign. :thumbdo: